UAE announces major oil discoveries in Abu Dhabi
The Supreme Petroleum Council (SPC) announced on Sunday new onshore discoveries of non-conventional, recoverable oil resources estimated at 22 billion barrels and an increase of conventional oil reserves by 2 billion barrels in the Emirate of Abu Dhabi.
The discovery is a huge boost to the UAE’s reserves, which stood at 97.8 billion barrels in 2019 according to OPEC’s Annual Statistical Bulletin, Gulf News reported.
The SPC announced the new discoveries during a virtual meeting chaired by His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, and SPC Deputy Chairman.
During the meeting, the SPC approved ADNOC’s action plan tailored to increase its capital investment to Dh448 billion over the next five years, which will help the company achieve smart growth.
Through this plan, ADNOC will reinject Dh160 billion ($43.6 billion) into local economy to the local economy from 2021-2025. This is to enhance the local added value, cooperate with private sector companies and international companies, provide more opportunities for the local private sector, contribute to economic and social development and create job opportunities for Emirati citizens.
The council also approved ADNOC’s award of new areas for exploration, development and production of oil and gas as part of the second round of competitive bidding launched by Abu Dhabi in 2019.
Conventional oil is found in pools and can be extracted with vertical well bores, whilst non-conventional oil requires horizontal boring and often hydraulic fracturing (fracking), according to the government of British Columbia’s Ministry of Natural Gas Development and Minister Responsible for Housing.
During the meeting, the SPC reviewed the quantum leap being achieved by ADNOC in its marketing, supply, trading and continuous development activities. Thanks to its expansion and the establishment of two new commercial companies: “ADNOC Trading” and “ADNOC Global Trading”, ADNOC has become more integrated in the fields shipping, logistics, warehousing, trade and trading.
ADNOC also intends to expand its shipping capabilities by purchasing a fleet of giant crude oil tankers through ADNOC Logistics and Services, which would provide new streams of revenue in the long run as it enters a new sector to support meeting the growing demand for its products.
The SPC reviewed the joint venture recently announced between ADNOC and Abu Dhabi Developmental Holding Company (ADQ), which was established by the two parties with the aim of developing and supervising the establishment of industrial projects within the Ruwais Petrochemicals Complex.
The meeting was attended by senior officials, ministers and top Sheikhs.
Also during the meeting, Shaikh Mohammed bin Zayed Al Nahyan spoke to a number of ADNOC employees who have been part of the first line of defense during the Coronavirus pandemic and lauded their sincerity and dedication to work, stressing that human resources are the most valuable and precious resource in the UAE.
Shaikh Mohamed affirmed that the President His Highness Shaikh Khalifa bin Zayed Al Nahyan attaches utmost attention to the plans and strategies set to develop various vital sectors in the country, especially the oil and gas sector, commending ADNOC’s ongoing efforts to expand its investments and activities through its ADNOC’s integrated 2030 Strategy.
He highlighted the importance of ADNOC’s success in maintaining its competitiveness, flexibility, continuity and sustainability of its business without interruption despite the exceptional circumstances brought by the coronavirus pandemic.
Despite the market conditions and challenges that resulted in a decline in oil prices, ADNOC was able to attract foreign direct investments worth Dh47.1 billion (US$12.8 billion) to the UAE this year, bringing the total foreign direct investment attracted by ADNOC since 2017 to Dh157 billion ( $42.66 billion).